Agenda - Public Works Committee - 10/21/2025

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an overlay treatment before deterioration has hit the point of no return. As previously discussed this would be to overlay a pavement when it's still rated a 6 or higher. During 2025 PASER evaluations Staff found several segment of streets with PASER values between 5 and 6, which are not included in the proposed CIP. It's anticipated that a street rated a 5 in 2025 would fall to a 4 or below within the next 5 — 10 years, if not sooner. Staff has identified 15.9 miles of streets not included in the 2026 — 2035 CIP with a 2025 PASER value of 5 or less. Staff anticipates these streets will need some type of significant rehabilitation (street reconstruction / full -depth reclamation / reclamation rehab.) project within the next 5 — 10 years, and/or require significant pavement patching (such as skim patching). Assuming typical reconstruction or full -depth reclamation projects are appropriate for these streets, staff estimates $12,000,000 to $19,000,000 in funding is needed for these potential improvements. It should be noted that all of the street segments identified were neighborhood streets, any MSA collector streets rated 6 or below are accounted for within the proposed CIP. Time Frame/Observations/Alternatives: Timeframe: Staff estimates up to 30 minutes will be needed to present this case and respond to questions. Observations: It's important to keep in mind that the CIP is a funding tool and no projects are authorized until City Council votes for approval. Staff recommends street reconstructions and overlay improvements with two main goals in mind; replacing the worst condition pavement in the City, and keeping the relatively good condition streets in good condition, so they don't deteriorate below the acceptable condition. The timing of projects is necessarily based on funding available, and realistic staff workload. The attached 2026 — 2025 CIP Breakdown is for referencing project years and anticipated project costs. The summarized cash flow balance may vary from the cash flow balance provided by the Finance Department. Funding Source: Funding for the Pavement Management Program primarily comes from Pavement Management Funds (General Tax Levy) and Municipal State Aid Funds. Additional sources of funding come from Public Improvement Revolving Funds, TIF District funds, and developer / assessment funds in some circumstances. Pavement Management Cash Flow: The Pavement Management Cash Flow spreadsheet is attached to this case for reference. Starting in 2022 annual dollars, from the General Tax Levy, are placed into the Pavement Management Fund. Additionally, in 2022 $11,903,744 bond dollars were placed into the fund to help catch up with necessary street reconstruction and overlays. The bond dollars are proposed to be used up by 2026; in 2026 approximately half of the proposed $5,573,000 PM budget will be bond dollars and half built up general tax levy dollars and TIF I & 2 dollars. By taking advantage of available TIF 1 & 2 dollars, the cash flow is anticipated to last thru the 2035 CIP, based on proposed spending. PMP Funding Annual Needs: Over the past 3 — 5 years the construction industry has seen the same high levels of inflation as others, generally resulting in costs increasing 25 to 40-percent. Fortunately, prices leveled out between 2024 and 2025. For comparison in 2021 Staff estimated a $200,000/mile cost for a typical overlay, in 2025 the same project is estimated at $300,000/mile. The City has approximately 190.62 miles of public streets, including the existing gravel roads. During the 60-year design life, a street is anticipated to require 2 overlays and 1 reconstruction. In 2024 construction dollars the City estimates on a typical street the average overlay costs $300,000 per mile, and the average reconstruction costs $850,000 per mile. Please note the reconstruction cost is averaged over all the different project types the City uses, i.e. full reconstruction, full -depth reclamation, stabilized full -depth reclamation, and reclamation rehabilitation.